👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

US seeks trade panel to resolve labor conflict at Mexican mine

Published 08/22/2023, 03:04 PM
Updated 08/23/2023, 12:10 AM
© Reuters. FILE PHOTO: The logo of mining and infrastructure firm Grupo Mexico is pictured at its headquarters in Mexico City, Mexico, August 8, 2017. REUTERS/Ginnette Riquelme/File Photo
GMEXICOB
-

WASHINGTON/MEXICO CITY (Reuters) -The U.S. government said on Tuesday that it has requested its first dispute-settlement panel invoking labor rules under a North American trade pact, in an effort to resolve a long-running workers' conflict at Grupo Mexico's San Martin mine.

The United States in June asked Mexico to review allegations of worker-rights abuses at the mine under the U.S.-Mexico-Canada Agreement (USMCA), but Mexico said the matter did not qualify for review under the trade deal.

In a statement, the Office of the U.S. Trade Representative (USTR) said it disagrees with the Mexican government's determination.

"It is appropriate to request a panel to verify the facility's compliance with Mexican labor laws," the USTR said.

Companies have closely watched U.S. labor complaints play out since the 2020 start of the USMCA, which replaced NAFTA. Under the agreement, companies can be sanctioned if they fail to swiftly resolve labor complaints.

Mexican union The Miners has argued that Grupo Mexico violated an extended workers' strike when it resumed operations at San Martin, which contains lead, copper, zinc and silver, and negotiated with a group of workers who did not have the right to represent the workforce.

Mexican law does not allow companies to operate normally while a strike is in place, the U.S. said in a letter to Mexican officials, arguing workers "are being denied the right of free association and collective bargaining."

Those rights are key tenets of the USMCA, which aims to improve workplace conditions in Mexico.

Grupo Mexico, a top global copper producer, said in a statement on Tuesday that the panel would show "once and for all" that the company has not violated the law or impeded workers' rights.

"For the San Martin mine it is important to put a final period to this chapter that unfortunately has hurt many workers and their families for more than 15 years," Grupo Mexico said, adding that "no strike continues (at the mine) since the will of the workers is to continue working."

In a statement late on Tuesday, Mexico's economy ministry argued the case should be excluded, citing the principle of non-retroactivity and as it had already been reviewed by national authorities.

© Reuters. FILE PHOTO: The logo of mining and infrastructure firm Grupo Mexico is pictured at its headquarters in Mexico City, Mexico, August 8, 2017. REUTERS/Ginnette Riquelme/File Photo

Mexico would make its position known before the panel, it said.

In a separate dispute, Mexico last week rejected a U.S. request for review at Grupo Yazaki's auto components factory, saying it did not find substantial evidence that worker rights were denied.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.